<PAGE> PAGE 1
000 B000000 10/31/98
000 C000000 924926
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 LATIN AMERICA SMALLER COMPANIES FUND, INC.
001 B000000 811-7197
001 C000000 6126712334
002 A000000 ONE EXCHANGE PLACE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02109
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 AMERICAN EXPRESS ASSET MANAGEMENT
008 B000001 A
008 C000001 801-15966
008 D010001 LONDON
008 D050001 UNITED KINGDOM
008 D060001 EC 2M 1QS
010 A000001 FIRST DATA INVESTOR SERVICES GROUP, INC.
010 C010001 BOSTON
010 C020001 MA
010 C030001 02109
012 A000001 FIRST DATA INVESTOR SERVICES GROUP, INC.
012 B000001 84-1761
012 C010001 WESTBOROUGH
012 C020001 MA
012 C030001 01581
012 C040001 5120
013 A000001 ERNST & YOUNG, LLP
013 B010001 BOSTON
013 B020001 MA
<PAGE> PAGE 2
013 B030001 02116
013 B040001 5072
015 A000001 BOSTON SAFE DEPOSIT & TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02108
015 E010001 X
018 000000 Y
019 A000000 N
019 B000000 0
020 A000001 MORGAN, J.P. SECURITIES
020 B000001 13-3224016
020 C000001 51
020 A000002 SANTANDER INVESTMENT
020 C000002 19
020 A000003 MERRILL LYNCH
020 B000003 13-5674085
020 C000003 18
020 A000004 ROBERT FLEMMING
020 C000004 14
020 A000005 SBC WARBURG
020 C000005 14
020 A000006 ACCIONES Y VOLORES
020 C000006 14
020 A000007 BARING SECURITIES
020 B000007 04-2455153
020 C000007 7
020 A000008 SOCIETE GENERALE SEC.
020 C000008 5
020 A000009 CITIBANK
020 B000009 13-5266470
020 C000009 1
020 C000010 0
021 000000 143
022 A000001 CITIBANK
022 B000001 13-5266470
022 C000001 649587
022 D000001 1329
022 A000002 UBS SECURITIES
022 B000002 13-2932996
022 C000002 2499
022 D000002 0
022 A000003 STATE STREET BANK
022 C000003 2408
022 D000003 0
022 A000004 FORD MOTOR CREDIT
022 B000004 38-1612444
022 C000004 1400
022 D000004 0
022 A000005 MELLON BANK
<PAGE> PAGE 3
022 C000005 0
022 D000005 865
022 A000006 SBC WARBURG
022 C000006 723
022 D000006 0
022 A000007 SANTANDER INVESTMENTS
022 C000007 0
022 D000007 443
022 A000008 BARCLAYS
022 B000008 13-3551367
022 C000008 0
022 D000008 58
022 A000009 LATINVEST SECURITIES
022 C000009 0
022 D000009 45
022 A000010 GENERAL ELECTRIC
022 B000010 13-1500700
022 C000010 16019
022 D000010 0
023 C000000 672636
023 D000000 2741
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
<PAGE> PAGE 4
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 1.250
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
<PAGE> PAGE 5
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
<PAGE> PAGE 6
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 C000000 Y
067 000000 N
068 A000000 N
068 B000000 Y
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
<PAGE> PAGE 7
070 R010000 N
070 R020000 N
071 A000000 18135
071 B000000 20829
071 C000000 36746
071 D000000 49
072 A000000 12
072 B000000 946
072 C000000 151
072 D000000 0
072 E000000 0
072 F000000 494
072 G000000 100
072 H000000 0
072 I000000 52
072 J000000 74
072 K000000 0
072 L000000 46
072 M000000 47
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 29
072 S000000 91
072 T000000 0
072 U000000 32
072 V000000 0
072 W000000 27
072 X000000 992
072 Y000000 0
072 Z000000 105
072AA000000 0
072BB000000 4388
072CC010000 0
072CC020000 19726
072DD010000 1265
072DD020000 0
072EE000000 0
073 A010000 0.3156
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 1
074 B000000 0
074 C000000 3779
074 D000000 0
074 E000000 6543
074 F000000 14807
074 G000000 0
074 H000000 0
<PAGE> PAGE 8
074 I000000 0
074 J000000 139
074 K000000 0
074 L000000 97
074 M000000 47
074 N000000 25413
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 133
074 S000000 0
074 T000000 25280
074 U010000 4007
074 U020000 0
074 V010000 6.31
074 V020000 0.00
074 W000000 0.0000
074 X000000 31
074 Y000000 0
075 A000000 0
075 B000000 39498
076 000000 5.13
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 400
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
<PAGE> PAGE 9
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 51828D104
087 A030000 LLF
088 A000000 Y
088 B000000 N
088 C000000 N
088 D000000 Y
SIGNATURE MICHELLE WHALEN
TITLE SR. ADMINISTRATOR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000924926
<NAME> LATIN AMERICA SMALLER COMPANIES FUND, INC.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 44057461
<INVESTMENTS-AT-VALUE> 25129492
<RECEIVABLES> 236367
<ASSETS-OTHER> 47175
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 25413034
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 133212
<TOTAL-LIABILITIES> 133212
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54968869
<SHARES-COMMON-STOCK> 4007169
<SHARES-COMMON-PRIOR> 4007169
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (13402)
<ACCUMULATED-NET-GAINS> (10746044)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (18929601)
<NET-ASSETS> 25279822
<DIVIDEND-INCOME> 945495
<INTEREST-INCOME> 151030
<OTHER-INCOME> 0
<EXPENSES-NET> 991730
<NET-INVESTMENT-INCOME> 104795
<REALIZED-GAINS-CURRENT> (4388413)
<APPREC-INCREASE-CURRENT> (19725886)
<NET-CHANGE-FROM-OPS> (24009504)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1264663
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (25274167)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4894609)
<OVERDISTRIB-NII-PRIOR> (316556)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 493846
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 991730
<AVERAGE-NET-ASSETS> 39497775
<PER-SHARE-NAV-BEGIN> 12.62
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> (6.02)
<PER-SHARE-DIVIDEND> 0.32
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.31
<EXPENSE-RATIO> 2.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors
To the Directors
Latin America Smaller Companies Fund, Inc.
In planning and performing our audits of the financial statements of Latin
America Smaller Companies Fund, Inc. ("the Fund") for the period ended October
31, 1998, we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, and not to provide assurance on internal
control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more of specific internal control components does not reduce to a relatively
low level the risk that errors or fraud in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control
and its operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above at October 31, 1998.
This report is intended solely for the information and use of the Directors and
management of the Fund and the Securities and Exchange Commission.
December 15, 1998
EXHIBIT 77C
Results of Special Shareholder Meeting
On December 15, 1998, the Fund held a Special Meeting of Shareholders
to consider a plan of complete liquidation and dissolution of the Fund
(the "Plan"), providing for, among other things, the sale of all of the
assets of the Fund, the distribution in cash of the net proceeds from
such sale of assets to the stockholders in accordance with the Plan in
complete liquidation of their interests in the Fund, and the subsequent
dissolution of the Fund pursuant to Maryland law. The results of the
voting are as follows:
Proposal: Approval of a plan of complete liquidation and dissolution of
the Fund.
Voted:
FOR: 2,624,069
AGAINST: 21,610
ABSTAIN: 6,500
G:\SHARED\CLIENTS\LATIN\MISC\NSAR77C2
